S&P 500, Gold, Bloomberg Commodity Index returns exclude reinvested dividends (gold does not pay a dividend) and the three-, five-, and 10-year returns are annualized; the DJ Equity All REIT Total Return Index does include reinvested dividends and the three-, five-, and 10-year returns are annualized; and the 10-year Treasury Note is simply the yield at the close of the day on each of the historical time periods.

Market Perspective

Oil prices have resumed their upward climb in recent months, following a pause from the sharp run that began after a low point in June 2017 (see chart above). Many investors attribute the increase to heightened geopolitical tensions as oil prices often rise with the risk of conflict. Here are other possible factors pushing oil higher:

OPEC and Russia have shown improved discipline in keeping production levels low.

Inventories are declining faster than expected.

A top oil-producing region in the United States, the Permian Basin, has a shortage of workers and insufficient pipeline capacity.

Energy stocks were the top performing sector last week. Even with the good week, energy stocks are down 4.2 percent over the last 12 months, trailing the S&P 500 by more than 15 percent.

Fun Story of the Week

Senior golf? Nebraska college golf team has 61-year-old freshman
Don Byers, a 61-year-old grandfather, is now a freshman golfer for Bellevue University in Nebraska. This came about after a friendly game with Bellevue University’s head coach turned serious when Byers played consistently under par. Byers thought the coach was kidding when Brown asked if he was eligible to play. Turns out he was serious and Byers is now the oldest NAIA athlete since 61-year-old kicker Alan Moore played for Faulkner University of Alabama in 2011. But, don’t assume Byers’ age comes with any privilege. His teammates still expect him to lug their bags around every now and then – like a true freshman.